Friday, January 2, 2009

Organic Food and Beauty Items Still Not Mainstream According to Leading Marketing Research Firm

GBB Note: There always seems to be stories prompting us to go "organic." The idea is great, but perhaps the industry as a whole needs to reassess the high consumer costs that go hand in hand with the word organic. Going all natural is tough in these economic times. I believe environmentally conscious women are willing to listen if a viable solution is offered....

/PRNewswire/ -- Despite all of the attention from the media and consumer products manufacturers, Organic Foods and Beauty Care items have still not gained mainstream acceptance by American consumers according to a recently released study by TABS Group, a leading Marketing Research and Consulting firm in the Consumer Products Industry. "There is a significant gap between the hype and reality of consumer purchase behavior with regards to Organic products," states TABS Group President and Founder, Dr. Kurt Jetta. "Less than 40% of Adults claim to have purchased anything from the major Organic categories in the last six months."

According to the study, Organic Fresh Fruit had the highest purchase incidence at 27%, with Organic Fresh Vegetables close behind at 26%. Organic Dairy Products, Eggs and Milk, were cited for purchase by 18% and 17% of US Adults, respectively. Frozen Organic products -- Vegetables, Fruit and Ice Cream -- had low purchase levels at 5-6%. Purchase levels for Organic Beauty Care products also had very low mainstream acceptance with stated purchase for Organic Skincare at 5% and Organic Hair Care and Cosmetics at 4% and 3%, respectively. By contrast, non-Organic products for all of the above categories have household penetration levels of well above 70%.

"The findings are consistent with trends we have been tracking in retailer sales data," commented Dr. Jetta. "Very few of these products have meaningful sales levels in traditional mass market retailers, even the ones that are very strong in the Natural Food and Specialty channels."

Dr. Jetta goes on to say that while a few retailers have had success with Organic products, most of the ones that have invested heavily in this trend will see a poor return on that investment. "Most of the sales growth in these channels has been driven by increased selection of Organic products rather than any inherent growth in consumer appeal."

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